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JAMIE OLIVER GROUP LIMITED Re-Branding; Re-Building and Management

An empirical assessment based on customer satisfaction towards concluding a route to sustain the Jamie Oliver brand. Will this brand survive the next decade? How to maintain, sustain and build the brand as a purposeful business; following the unfortunate ]events taking place this year placing a moratorium around the Jamie Oliver company falling into administration.

Brand building and management enables us to understand the necessary embodiment a company requires to establish their presence; within their designated business market amongst other ]]vendors. To construct a brand and maintain a company there are theories and methods needed to constitute elements within a brand model.

Brand building

It is essential that effective strategies are ]incorporated in building and managing a brand. An efficient maintenance of the brand can contribute towards the evolvement of the brand. For successful brand health, it is mandatory to improve brand equity through increasing loyalty in the market and creating good corporate image. In this context, loyalty with the customers and also with the other stakeholders is mandatory for the business to sustain in the market and create values for the customers. On the other hand, brand awareness and identity must be developed efficiently through arranging social campaign and creating good organisational logo Whatsappwith effective vision so that it would be possible for the entrepreneur to retain the stakeholders and develop the strategic planning for the business. Quality of the organisation is also necessary to be managed well, and for the company Jamie Oliver, it is also mandatory for the leader to maintain the quality of their products and services provided to the customers and business dealers so that it would be beneficial for the company to be sustainable in near future.

Brand is the "name, term, design, symbol, or any other feature that identifies one seller's product distinct from those of other sellers” American Marketing Association

-A brand is a label designating ownership by a firm which we experience has feelings towards and builds associations with to perceive value. (Brakus et al., 2009)

Brands consist of a range of perceptions in the minds of consumers.

Brand building

Thus ‘the management of brands is all about the management of perceptions…

(Rosenbaum-Elliott, Percy and Pervan, 2015)

Branding is important for maintaining the brand health in the market as well as promoting the organisation for attracting the segmented customers. In this regard, there are several strategic planning, which are mandatory for the brands to promote their business and achieve future sustainable growth. According to the above branding model, there are several strategies through which the organisation can develop the branding and these are product quality, pricing, arranging campaign, staff attitude, cooperate identify generation, managing customers service, facilities as well as internet and public relationship management, sales approaches and promotional activities or marketing. These are the major tactics of creating brand image and maximise brand health in near future. The model is effective for the organisation Jamie Oliver to invest in the product and services, develop marketing planning and manage the stakeholders of the business so that Jamie Oliver would be able to secure future sustainable development.

The power of a brand to influence]perceptions can transform:

How consumers think about an organisation / brand

How consumers behaviour towards a brand–(Pearson business school 2019)

Brand building Brand building

Brief history

]Due to the issues of underlining poor management, ]the need for branding and new business management within this ]organisation are required. Jamie’s Italian restaurants and the Jamie Oliver ]group food ]ethos are a multi strategizing brand. The management have been ]challenged with the brand relevance, maintenance of property also elements of CSR.

Salience; brand identity – Performance, Imagery, Judgement, feelings, resonance of Jamie Oliver

Analysing the Jamie Oliver group from few different perspectives how the ]brands models have been applied in different segments of the catering industry, providing a service ]of; Food ]entertainment documentary ]shows, commercials, physical products also knowledge through the sales of Jamie Books and magazines.

The brand health hasn’t been consistent with societal trends, the UK’s economical beneficiaries, ]the wants, evolutionary ]changes taking place within the food industry having also an essence of the brand being diluted somewhat lost. The ]firm had also ]been struggling financially and have been in debt for some time.

Several ventures of Jamie’s like Barbacoa Steak restaurant located in London St. Pauls and Piccadilly circus which also had Jamie’s American diner located 4 minute walk away also closed down as well as the Jamie Oliver group’s Union Jack Restaurants, ‘Recipes’ where consumers could eat out, learn how to make meals from scratch initially closed down ]first prior ]to recent closures having insufficient funds available to continue to trade within business administration. Financial times report, Mr Oliver is no stranger to business failures, having previously admitted that two-fifths of his various ventures have not succeeded — including cookery shops, the British-themed Union Jacks pizza restaurants and an eponymous food magazine. Still operating outside of the UK, the Jamie Oliver restaurant group eateries are still open for business and continue to cater to their consumers. Last year it emerged the TV chef's restaurant empire owed staff £2.2million and was in£71.5million of debt. In February 2018, the company announced the closure of 12 of its 37 restaurants, seeing 450 job losses. (Mirror2018)

All but three of the 25 eateries operated by Jamie Oliver Restaurant Group — including 23 Jamie’s Italian, Barbacoa and Fifteen in London’s Shoreditch — have closed. The administration comes despite a heavy restructuring and an injection of £12.6m into Jamie’s Italian from Mr Oliver in 2017.

Having invested some of his personal resourced income as well as fundraising through and for the business, a network worth the net worth of over £200 million had depleted. The funds ]rose, wasn’t enough therefore leading the brand to being dissolved via administration. Administrators KPMG said in a ]statement. Financial times ]report “However, with no suitable investment forthcoming and in light of the very difficult current trading environment, the directors resolved to appoint administrators.”

Jamie’s eateries aren’t the only company in this business environment facing trading and financial hardship, other catering chains ]also have to close down a few of their restaurant groups over the years. See inserted graph (The reoccurring problems are as follows:

Brand building
  1. 1. Private equity takeover
  2. 2. Saddled with debt
  3. 3. Profit extraction
  4. 4. No investment cash/ cash flow issues on downturn
  5. 5. Pre-pack admin
  6. Business insider)

Challenges of Jamie Oliver die to changing customers preferences

Many similar operating brands are usually owned by private equity firms who have methods to expand businesses of this category aggressively onto the casual dining market; leading firms to have too much space in conventional district’s whilst consumer spending power is resulting to a decrease, under pressure due to the uncertainty accompanying the Brexit negotiations, elections, majority of consumers are not finding the surplus cost for a meal at present appealing.

The brands have also been challenged by the development of takeaway app services competing within the food industry Hungry House, Uber eats, JustEat, Deliveroo, Dining discount cards like Taste card, Westminster City Save cards, including distribution of food, fibre; food supplies, the increased pricing around the maintenance of restaurants, staff turnover, interior investment etc. Business rates rising due to how the restaurant industry sometimes slow down the economy when there’s an inflation has caused a lot of dining traders to revise their brand management. While differing customer preferences and changes in how they spend their money are creating trends that drive change in the industry, the economy also has internal impacts on restaurants. Factors like food and labour cost inflation are likely to continue to impact the restaurant industry in the foreseeable future. When inflation is low, consumers have more purchasing power. So, there is a higher spending capacity. This is a positive sign for restaurant companies such as Chipotle Mexican Grill (CMG) Jamie’s Italian (JI) Byron (BN)! ... If prices increase too quickly, it may result in negative sentiment among consumers and slow down the economy.

The urge and urgency for healthy eating and living has quadrupled interest with many individuals and families worldwide. A global ripple effect, people are trying to live longer healthier purposeful lives this will assist with Jamie Oliver’s group brand association. Living and working in age of longevity. “Those that came before you did not have to think so consciously about actively navigating their lives through so many distinct changes, or indeed developing their capacity for transition. -Lynda Gatton100-year life

Negative environmental impacts on Jamie Oliver

The population are growing a conscious concern for the environmental state in which their communities are in; and the nutrition their bodies are consuming to avoid obesity or deadly bodily virus’s like cancer through consuming bad foods or having a poor diet/lifestyle, and there’s worldwide interest and events that have taken place in action to help find solutions towards the potential global climate change crisis. Environmental health concerns (pollution, diesel), mental/general health are all major global topics of discussion and societal trends as populations are approaching the borderline statistics of obesity in the UK and the USA. Businesses have also grasped this trend as a good market to invest products and services into catering to the vast demographics meeting economical standards of society at present.

The visual inserted displays a simplified graph sourced from the national health forum conversation; Health Survey for England online, showing the rapid outburst market for healthy eating businesses and products. Stating the current annual government expenditure of £6.5 Billion on solving obesity related health concerns within the UK population. Here you can see the health problems in the United Kingdom which is initially an open market open to trading around conscious healthy eating or longevity lifestyles amongst the nation. It’s advisable for the Jamie Oliver group to identify, comply and internalise the platform for this market.

Brand building

Current brand health management

Jamie Oliver group limited has now prompted the brand and business ethos a new fresh image resurrecting the remainders of his business empire with a more transparent approach in what their business model and mission statement for the company growth and brand purpose will entail to their consumers and stakeholders, also encouraging schools to teach children how to grow food and cook fresh meals. With the introduction of the sugar tax levy, since the levy was announced in 2016, it has driven reformulation of products at an unprecedented rate (when brands reduce the level of sugar, fat and salt in their products) and it will also channel new money into child health. (JamieOliver.com). This created a campaign alongside a documentary to introduce the populations sugar intake Jamiedirected programme ‘’in a crusade to save Britain’s health (channel4)’’emphasising the importance of brands providing consumers with the recommended daily sugar consumption in their products.

Brand building

The above mentioned strategic model for successful branding or brand health management is beneficial for the organisation to identify the strategic tactics to establish the organisation in the market. As per the model, resonance is mandatory for the organisations to set up their business and in this regard, loyalty, attachment, community and engagement are necessary. For managing loyalty and attachment, the business must focus on developing corporate relationship with all the stakeholder, engaged with the business such as managers, employees, suppliers and distributors of the organisational products and services as well as the shareholders, social community members and the customers, who are playing efficient role to run the business operational activities successfully. Hence, attachment and creating good bonding are necessary for creating good corporate image in the market. Additionally, judgments and feelings are also important for successful branding and in this regard the organisation like Jamie Oliver Group must focus on delivering high quality products and services that would match the expectations of the business clients and customers. For performance management, the Jamie Oliver Group also needs to focus on improving creativity and technological innovation to serve the customers with trendy recipes and kitchen appliances to maximise their satisfaction and retain them for long run. As a whole Jamie Oliver Group Limited have heavy presence within the food industry twenty years in, branding endorsements with several different food businesses in different segments within the foodindustry. The brand has built a foundation of millions of supporters around the world who identify the brand as positive.

‘The availability of his culinary excursions and travelogues on globally accessible platforms such as YouTube, as well as to an entrepreneurially shrewd mindset that has been urging him constantly to diversify across culinary related products (from ready-to-eat foods to recipe books and cooking utensils) and services (bars, restaurants, and training academy), he soon rose to a global gastronomic icon. His path to stardom ramified through multiple axiological and thematic avenues’ (George Rossolatos 2018)

These avenues are the foundations which are still serving the (JO) group to continue with business still bringing forth revenue as the brand are no longer investing into the restaurant chain. Mr Oliver’s media business, including his TV shows andcookery books, continues to thrive. The latest figures show revenues rose to £32m last year, while underlying profits jumped 45 per cent to £8m. Hence, the product diversification strategy and improving successful branding activities are also necessary for Jamie Oliver Group to be sustainable in the hospitality industry and manage the stakeholders as well efficiently.

Paul Hunt, chief executive of Jamie Oliver Group and the chef’s brother-in-law, said the media empire was “fundamental to our ability to support the restaurant business and ensure its continuity. “With a reshaped restaurant estate, a new management team and a focused investment plan backed by HSBC, we are making steady headway in a challenging market.”(AdamForesst 2018)

Lifetime brand value creation

As the world revolves around launching economic automation activity; incorporated with the major interest in healthy eating as well as the invention of sugar tax levy. The integration between technology and businesses continue to develop, it’s questionable whether the demographics willneed the millions of restaurants there currently are on the market at such a macro scale. The immediate generations are rapidly growing appeal towards fast convenient services, especially in the food industry. The majority are into ordering in as it’s become an indispensable way of life.

Brand building

E-commerce and Artificial intelligence are making its presence more available in the market. Waiters are losing their restaurant jobs as AI robots replace them providing the same service with only human touch barriers as arestriction, on emotional engagement with consumers may be the only downfall of this new innovation yet assist running businesses in China efficiently. KFC in China has a face recognition system for ordering food. Investment in automation in the food sector is on the rise. In 2018, the sales value of the market in China alone amounted to more than $123 million, and by 2025 it’s estimated more than $500 million worth of robots will have been sold to the global food and beverage industry. world economic forum2019

Brand building

KFCYum China Holdings Inc. says 86 percent of transactions are already cashless and about half of orders are placed via mobile app or digital kiosk at its more than 8,400 KFC, Pizza Hut, and Taco Bell restaurants. The next step is to harvest data from the more than 180 million Chinese who belong to KFC and Pizza Hut loyalty programs and use artificial intelligence to customize a menu for each diner based on preferences and local tastes. Yum says the AI-powered menu, introduced in January, has already boosted average per-order spending by 1 percent—the equivalent of about $840 million worth of fried chicken and pan pizzas each year.

Brand building

It’s betting the AI-powered menu and increasing automation will help cut costs, boost sales, and outsmart rivals. “We need to stay ahead of the clear trend in digital development,” Chief Executive Officer Joey Wat says. “That’s the future.”

Culinary, Hospitality jobs usually delivered by staff are now being challenged by touch screen kiosks, robot arms, waitress robots, miso ai technology. In reorganising this social organisation and instilling healthier brand management prompting healthy diets, tackling previous complaints about the duration chefs took to prepare meals at his Jamie’s Italian UK branches the Jamie Oliver group are recommended to continue to maximise the books, social campaign and media platforms, investing in providing a new, brand association around Jamie’s Italian as they’ve relocated in Bali, Indonesia accessing the automation services for the Jamie Italian brand now overseas will assist in maintaining relevance and consumer interest by providing fast automation ordering services. This strategy would be beneficial for Jamie Oliver Group to sustain in the market and retain more customers by being creative and technologically innovative. Healthy lifestyle settings with ethical furniture will empower the brand health and reputation providing a fresh new service. Functioning similar yet opposite the likes of brands KFC renamed The Jamie Oliver Kitchen (TJOK) healthy fast food service similar to Leon.

The brand is to consider this if plans are in place to Re-enter restaurant trading within the UK. Conducting primary research creating questionnaires and surveys high lighting what the UK public would like the Jamie Oliver Group to provide will also help the new brand management research method.It’s suggested that, the brand association around Jamie’s Italian restaurants to be revised as Jamie is an English man with an Italian Mentor.

Re-branding the brand name to The Jamie Oliver Kitchen will automatically change his brand concept with a clearer image and ethos to rebuild brand health keeping the Italian entity at bay, unless the group opens Jamie’s Italian chain across Italy with the same MacDonald’s presence the group had on the British high streets better business may come from Jamie’s Italian chains if renamed Gennaro and Jamie’s Italian and relocated for business outside of the UK to Asia.

China and South East Asian Demographics & statistics;

Population: 4.255 million

GDP: $1,014 Billion 2017 GDP per capita: $3,876.8

Source: Indonesia Statistics, GTA and Euromonitor

Majority of consumers whether middle classed or wealthy all require a sufficient healthy meal, an efficient service, whether it be from a prestige Jamie restaurant before acquittance Barbacoa in St Pauls or a simple Jamie’s Italian Restaurant which is in the similar dining category as the ‘Italian’ MacDonald’s or Starbucks that’s on most high streets. Moving forward if The Jamie Oliver group are to remain in this industry, they need to take a proactive approach, clear brand strategy to match their ‘’premium’’ standards for the brand including a transparent approach with their consumers swell as staff. The fit between celebrity endorsers and the brand can be based on different characteristics. Kahle and Homer (1985)

Also, as a brand starting off with the initial good-looking lad with commendable cooking skills reputation, he struggled to maintain the naked chef threshold, the supermarket endorsements collaborations with TV series with trending celebrities. The campaigns the brand created which have been effective in contributing towards the establishment of new laws, a healthy eating movement with its consumers across the world. With an astonishing 66 countries who took part in Food revolution day the first of this kind of event, creating awareness around the malnutrition’s children are consuming in the UK, encouraging the associated target market and the nation as a whole to return to cooking homemade feelgood, fresh food from scratch, discussing the importance of food education,.creating a global fight for food conversation.

Research shares the fact that everything stems down to the root.. The name on the brand logos and creator of the business are the important factors. Subsequently speaking anything Jamie Oliver does has proven to have seasonal gain or profit for his business society due to his reputation although his ethics, values are predominantly correct. Financial times “The directors at ‘’Jamie Oliver Restaurant Group have worked tirelessly to stabilise the business against a backdrop of rising costs and brittle consumer confidence. ()” Further reports suggest that the brand was initially over rated amongst other diners. Initially the consumers concluded to stating that the brand wasn’t anything special as it was designed to be, hence why the loss of interest and ratings by consumers and deterioration of the brand and business in the UK.

Brand building

‘’One leisure industry analyst said that along with the problems common across the sector, Jamie’s had “tried to be special out of 25 branches”, which was not sustainable for a business fronted by a celebrity chef. “If you’re not going to be in the building regularly, you’ve got to make sure your DNA is all over it, otherwise people question what they are paying a premium for’’ “Ultimately, punters decided that Jamie’s was more ordinary than special.”

Consumers somewhat when purchasing a Jamie Oliver product or service you except a bit of Jamie feel or Jamie actually serving you, consumers are buying him the ‘’celebrity chef status’ ’association not what his business culture is. The celebrity status appeals to the millennial influencer era of people. An image buying target market they purchase, travel and eat whatever looks good to the eye also recommended or being used by influencers or celebrities.

Similar to the saying that ‘sex sells’ you’d think of food in similar context the way Jamie Oliver had promoted himself invested his name within every aspect of the food industry you could think of unlike chef Gordan Ramsey who has remained exclusive within the same trade and hasn’t exploited the craft Jamie Oliver has never had a Michelin star.(jamieoliver.com) For someone who has the reputation and exposure that Jamie had, this clearly shows the businesses havefaced challenges maintaining relevant at the top end of the food industry.

The brand had been consistent in their brand category and had adapted as the consumer attitude and health trends changed overtime. The Jamie Oliver group deliver a multi brand strategy with a clear ethos promoting healthy feel good food in fight against obesity and this is the market I’d recommend for rapid evolvement increasing brand health, association and reputation. The global brand identity will assist in the continuous innovation of the brand if collaborating will be successful with the new brand nodes present in consumers’ minds. Association with brands like the BBC, Great Ormand Street Children’s Hospital, Instagram; following his recent #Adenough campaign highlighting the increase of adverts being promoted to children in his tackle against child obesity. In response to the brand name, the association set is activated in the memory of the consumer (Krishnan, 1996)

The brand has had consumers take selfies on Instagram with their children covering their eyes; (Symbolic benefits (social benefits) Keller’s 1993); when a junk food advert appears on the television. Brand associations reflect the consumers ‘perceived image of the brand; the associations a consumer has while thinking about a brand. From a network memory perspective, nodes can be brands, products or attributes. The term ‘association’ means a link between any two nodes (Krishnan, 1996).

Brand associations are a core asset for building strong customer-based brand equity. A full understanding of brand associations is necessary in order to build strong brands (Chen, 2001). The strength, favourability and the uniqueness of the brand associations play an important role in the differentiation of a brand and its’ competitors.

A brand campaign as such will, initiate conducting a Keller’s Associate network memory model showing consumer interest, highlighting the core brand mission in consumers’ minds in a millennial fashion; associating a movement currently used as a marketing tool by brands and influencer’s currently in the main stream. Campaigns are a metric for maximising awareness; messages behind political or media markets tackling the influence it has on children. Leading to the conclusion that the more a young person sees something as a child or young person the more they see a product advertised it generates interest and a want in their minds and consumers have noticed the controversy around brands marketing their businesses to children. The debate starts as early as the 1970s as advertising and marketing have been consistently in business and can be ubiquitous factor in people’s lives these business exposes brands for a living and children are also exposed to brands daily. It’s with great recommendation to continue this bringing awareness within this market segment anything to reduce obesity and save children’s lives is an ethical business campaign in matters of health and wellbeingOwler.com, 2016).

Brand building

Businesses measure brand equity through customer knowledge, preference, and financial metrics, The Jamie Oliver kitchen brand in Asia can use the similar metrics to measure the brands development and success abroad.

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Restaurant metric measures are different to corporatebrands in correlation with

Brand building

Distributed brands can set brand equity through measuring output, local marketing metrics, and competitors. For successful branding, the organisation Jamie Oliver Group must focus on stages which further provide a scope to improve brand health in near future. Before developing the branding strategy, the organisation must conduct market research to identify the actual needs and preferences of the customers, this will provide a scope to Jamie Oliver Group to understand the perception of the consumers in the market and segment the customers for retaining them in future. The organisation also needs to develop quality products and efficient services to satisfy the customers and maximise their values. In this regard, the kitchen appliances, healthy life style leading activities and healthy eating habits, as well as creative and easy recipes must be developed by Jamie Oliver Group to retain the customers and include the robotics system for serving them efficiently. Hereby, both the quality products and service efficiency through technological advancement will improve bran innovation leading to attractive branding in the market. In addition to this, promotional activities are necessary for the organisation to increase brand value and loyalty among the stakeholders mainly the customers. For promotional activities, Jamie Oliver Group must arrange social campaign and utilise the social media platform for promoting the business through images and attractive posts with all the necessary information about the products and services, provided by Jamie Oliver Group. Sending personalise email to the customers, television advertisement and the SEO content management would also be beneficial for Jamie Oliver Group to sustain in the market and increase brand visibility in the market.

References/Bibliography

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  • Boseley, Sarah. “Jamie Oliver’s Sugar Rush: A Crusade to Save Britain’s Health.” The Guardian, The Guardian, 18 Aug. 2018, www.theguardian.com/lifeandstyle/2015/aug/27/jamie-oliver-sugar-rush-channel-4-crusade-save-britain-health. Accessed 13 Mar. 2019.
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  • “Jamie Oliver Accused of Cultural Appropriation over Jerk Rice.” The Independent, 20 Aug. 2018, www.independent.co.uk/news/uk/home-news/jamie-oliver-jerk-rice-cultural-appropriation-jamaican-food-dawn-butler-a8498916.html. Accessed 9 Aug. 2020.
  • “Jamie Oliver Defends £5m Shell Deal as He Launches Deli Range with Oil Giant.” Metro, 16 Jan. 2019, https://metro.co.uk/2019/01/16/jamie-oliver-defends-controversial-deal-shell-launches-new-deli-range-oil-giant-8350485/Accessed 9 Aug. 2020.
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  • Goodley, Simon. “Jamie Oliver Launches New Mid-Range Restaurant Concept.” The Guardian, 18 Nov. 2019, www.theguardian.com/business/2019/nov/18/jamie-oliver-reheats-bid-to-build-mid-range-restaurant-chain. Accessed 9 Aug. 2020.
  • “KFC Aims to Keep Its China Edge With AI Menu, Robot Ice Cream Maker.” Bloomberg.Com, Bloomberg, 20 Mar. 2019, www.bloomberg.com/news/articles/2019-03-20/yum-china-is-building-the-kfc-of-the-future.
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